Nigeria Can Save $7.4 Billion a Year From Ethanol – MEMAN

During its June 11 Competency Centre Series Workshop on Ethanol as a Biofuel, the Major Energies Marketers Association of Nigeria (MEMAN) proposed adopting ethanol to mitigate Nigeria’s energy poverty and reduce emissions. According to MEMAN, supplementing petrol with ethanol could save approximately $7.4 billion annually.

Ethanol is produced through the fermentation of plant materials such as cassava, corn, and sugarcane and serves as an effective substitute or additive to petrol in vehicles. During the webinar, MEMAN emphasized that ethanol, when blended into biofuel, has the potential to transform Nigeria’s energy sector and foster a sustainable economy.

Ethanol is a renewable alcohol-based fuel produced by fermenting starches and sugars from crops like sugarcane, cassava, and sorghum. It comes in two forms: denatured, which contains additives that make it unfit for consumption, and undenatured, which is used in beverages and medicines.

This biofuel is not only a viable energy alternative but also serves various other purposes such as in hand sanitizers, disinfectants, and industrial solvents. Ethanol presents numerous benefits, including economic, environmental, and agricultural advantages, without necessitating vehicle modifications. 

Agwu Ojowu, a Senior Consultant with Africa Practice, noted that Nigeria’s annual cassava production is 63 million metric tonnes, accounting for 26 per cent of the global total. However, with 40 per cent of this yield wasted each year, the economic loss is substantial, estimated at $7.4 billion.

Developing the ethanol industry could mitigate these losses, enhance economic stability, and reduce costs by taking advantage of the country’s depreciating currency.

Ethanol selling point

  • According to Ojowu, ethanol’s higher octane rating improves fuel quality and meets environmental standards by reducing sulfur content and greenhouse gas emissions.
  • Ethanol is a cost-effective and environmentally friendly alternative to petrol, aligning with Nigeria’s climate commitments.
  • Nigeria’s initial venture into ethanol, the 2007 biofuels policy, mandated a 10 per cent ethanol blend in fuel. Despite challenges, including the suspension of the policy in 2008 due to blending inconsistencies, ethanol’s potential remains significant.
  • Ethanol’s historical cost-effectiveness compared to petrol suggests that a well-regulated biofuel market could be economically beneficial.
  • The multiple economic, environmental, and agricultural advantages of ethanol do not require vehicle modifications.

Clement Isong, the Executive Secretary of MEMAN, emphasized the critical role of renewable energy in tackling Nigeria’s energy poverty. He stressed the importance of diversifying energy sources, including biofuels, solar, hydroelectricity, and wind energy, to establish a balanced and sustainable energy mix.

“MEMAN is dedicated to collaborating with industry stakeholders to advocate for energy solutions that address Nigeria’s needs,” Isong said. He expressed optimism about the future of renewable energy in Nigeria and the continued efforts to enhance press engagement and industry collaboration.

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